Reference no: EM132506202
Paxson Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Paxson Mining Co. for 2014 and 2013 are provided below.
BALANCE SHEET
12/31/14 12/31/13
Cash P204,000 P 96,000
Accounts receivable 180,000 108,000
Merchandise inventory 192,000 240,000
Property, plant & equipment 304,000 480,000
Less accumulated depreciation (160,000) (152,000)
Total Assets P720,000 P772,000
Accounts payable P 88,000 P 48,000
Income taxes payable 176,000 196,000
Bonds payable 180,000 300,000
Common stock 108,000 108,000
Retained earnings 168,000 120,000
Total Liabilities and SHE P720,000 P772,000
The income statement for year 2014 disclosed the following information.
- Sales of P4,200,000
- Cost of sales of P3,576,000
- Selling Expenses and administrative expenses shows P300,000 and P96,000, respectively.
- Interest expense recorded P36,000.
- Income taxes is 25%.
Additional information:
a. Dividends for the year 2014 were P96,000.
b. During the year, equipment was sold for P120,000. This equipment cost P176,000 originally and had a book value of P144,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.
c. All depreciation expense is in the selling expense category.
Question 1: What is the net cash provided by operating activities?
Question 2: What is the total net cash provided (used) by financing activities?
Question 3: Under the direct method, how much is the cash received from customers?
Question 4: Under the direct method, how much is the total taxes paid?
Question 5: And how much is the net cash provided (used) by investing activities?